GBGJPYHey Traders! Let’s Dive Into GBP/JPY 🔍
Here’s a breakdown of an exciting setup I’m watching closely on GBP/JPY (Daily timeframe). It’s shaping up to be a textbook bearish continuation
let me walk you through the key details:
Bearish Flag Pattern
The chart shows a classic bearish flag in action. After a strong sell-off (the flagpole), the price has been consolidating within an upward-sloping channel, forming the "flag." This is often a pause before the next leg down, and the measured move suggests we could see significant downside if the flag breaks.
Entry & Confirmation
Patience is key here! I’m looking to enter at 188.000, but only after confirmation. Ideally, I want to see price rejection at the bearish Fair Value Gap (FVG) or clear signs of selling pressure at this level. No confirmation, no trade—that’s how I roll. 😉
Stop Loss (SL)
The stop loss is placed just above the flag's upper boundary. If price breaks above, it invalidates the pattern and signals that the bears may have lost control. This small risk is worth taking for the potential reward ahead.
Targets to Watch
Here’s where it gets exciting:
First target: 179.000 – A key intermediate support level.
Final target: 160.000 – A major historical support zone and the projected move from the flagpole.
If the breakdown plays out as expected, this could be a fantastic risk-to-reward setup. 🎯
Key Levels to Keep in Mind
Resistance at 199.000: The ceiling holding back upward momentum.
Support at 188.000 & 179.000: Zones where price may react before heading lower.
My Take
This setup screams bearish momentum, but as always, I’m waiting for confirmation before pulling the trigger. The bearish flag, coupled with a clean breakdown at the FVG, could pave the way for a strong move south. Discipline and proper risk management are non-negotiable—don’t chase it! 🚨
What’s your view on GBP/JPY? Let me know in the comments! 💬
Trade safe,
RAY
Feel free to tweak this as needed!
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